Centre notifies Chakrabarty's appointment as RBI dy governor

The government has notified the appointment of Kamalesh Chandra Chakrabarty as Reserve Bank of India (RBI) Deputy Governor, while starting the process of appointing a fourth deputy governor.

Official sources told Business Standard that Chakrabarty’s appointment was notified yesterday, a few days after an official approval was received. The Punjab National Bank Chairman and Managing Director was expected to take up his new assignment on Mumbai’s Mint Road in the third week of June, sources said.

Despite several attempts, Chakrabarty could not be reached over the phone.

Following Mohan’s departure, RBI will have to make do with two deputy governors, Shyamala Gopinath and Usha Thorat, till Chakrabarty takes over.

Sources said the government had started shortlisting economists who could replace Rakesh Mohan as the fourth deputy governor. Mohan is due to leave the central bank next week to take up an assignment at Stanford University.

While the list was still under preparation, Chief Economic Advisor Arvind Virmani was a near certainty among the shortlisted candidates, sources said, adding that the other names were still at a discussion stage. Raghuram G Rajan, the author of a report on financial sector reforms and a professor at the Chicago University’s Booth School of Business, was, however, not in contention, said sources.

The shortlisted economists would be assessed by a committee headed by RBI Governor D Subbarao before a list of candidates is sent to the government for appointment. The whole process could take a few months, sources said. Over the last few years, an economist has been in charge of the monetary policy department, while public sector bankers who have become deputy governors have handled banking supervision and development.

Chakrabarty will replace V Leeladhar, whose term came to an end in December.